Agriculture Loan

News About Agriculture Loan

• Crop Loan waiver to benefit over 78,000 Farmers

  Crop loans that are outstanding as on 30th June 2016 will be waived in Tamil Nadu. Chief Minister Jayalalithaa had made the promise to waive these loans during the Assembly Election 2016. A function was held at the Maravankudieruppu Primary Agriculture Cooperative Society. The certificates of the waiver to small and marginal farmers were distributed at the event. Rs.2.20 crore of loans were already waived at the PACS. Farmers who had availed crop loans for short and medium terms stand to benefit. The estimated figure of farmers that will benefit from this waiver is 78,669. The total loan amount including interest that will be waived amounts to around Rs.251 crore.

  

  12th September 2016

• Agriculture Minister urges Banks to ease Process of availing Crop Loans

  In a move that will make it easier for farmers to get crop loans, agriculture minister, Radha Mohan Singh, has instructed banks to take all necessary measures to streamline and simplify the process of loan approval, so that funds can be provided to farmers in a timely manner. He has also urged banks to make the loan availing process ‘hassle-free’ by systematizing the documentation process and connecting the mobile banking, Andhra and Jan Dhan. For the current financial year, the government has increased the agricultural credit target from Rs 8.5 lakh crore (2015-2016) to Rs 9 lakh crore. Additionally, farmers can also avail short term loans up to the amount of Rs 3 lakh at a subsidized rate of 7% for a tenure of 1 year. Farmers who repay the loan in a timely manner will be allowed a further subvention of 3 %.

  

  19th July 2016

• NOC Requirement Scrapped for Crop Loans

  The Maharashtra state government has effectively scrapped the requirement for obtaining a no objection certificate (NOC) from societies and banks before applying for a fresh crop loan. The move is likely to benefit the larger farmer community in general. Furthermore, the government has done away with stamp duty paid by farmers on mortgage while applying for crop loan. The new schemes have been launched starting from Kelapur Tehsil in Wagda Village from 17th May onwards and more areas will be covered in the coming days. The Bank of Maharashtra and Maharashtra Cooperative Bank have received instruction regarding the same.

  

  20th May 2016

• Odisha to Give Farmers Cooperative Loans worth Rs. 6,000 Crore

  The Odisha Government has decided to disburse Rs. 6,000 crore as cooperative loans to farmers for the kharif season. Cooperation secretary Manoj Ahuja wants farmer members of primary agriculture credit cooperative societies (PACS) to receive timely, adequate and hassle-free credit during the 2016 kharif season. Loan targets will be assigned to commercial and regional rural banks at the state-level bankers committee meeting soon. Targets have also been fixed for each district. Pradhan Mantri Fasal Bima Yojana, a new crop insurance scheme, will also be implemented this year.

  

  18th April 2016

• Odisha to Receive Rs 8,800 Crore Loans in 2016 Following NABARD Sanctions

  The regional office of the National Bank for Agriculture and Rural Development (NABARD) has officially sanctioned loans worth Rs 8,800 crores in Odisha as state government loans, direct loans and refinance support to banks for the year 2015-2016. A statement released by the regional office, highlighted that Odisha has always been among the biggest beneficiaries of RIDF of NABARD, wherein loans are given to the state government for the setting up and improvement of important and critical rural infrastructure projects such as irrigation, bridges, roads and much more.

  

  12th April 2016

• NABARD increases Gujarat’s Credit Potential by 16% for 2016-17

  National Bank for Agriculture and Rural Development (Nabard) has raised the credit potential of Gujarat by 16 percent to Rs. 1,01,353 crore for the fiscal year 2016-17. The credit potential for 2015-16 has been pegged at Rs. 87,473 crore. Nabard’s State Focus Paper reported that finance requirement in the priority sector is likely to go up. The proportion of agriculture credit in the 2016-17 projection is expected to be Rs. 65,892 crore. MSME and other priority sector is estimated to need credit of Rs. 23,914 crore and Rs. 11,547 crore, respectively. Nabard has requested banks to maintain a smooth credit flow for investment in the agriculture sector. The sector’s requirements are estimated to be Rs. 44,777 crore in crop loans and Rs. 21,115 crore for agricultural term loans.

  

  1st February 2015

• The annual credit plan for Bihar is ready

  Nabard- the National Bank for Agriculture and Rural Development has prepared its annual credit plan for Bihar for the financial year 2016-17 after assessing its credit absorption capacity at over Rs. 1 lakh crore. The credit capacity of Bihar for 2016-17 has been assessed for total 38 districts. Based on the state’s credit potential, Nabard has reserved loan disbursement worth Rs. 61,656 crore which include Rs. 38,191 crore for short-term loans and Rs 23,465 crore for long-term loans. Also, it plans to reserve Rs. 19,084-crore worth of loan for the micro, small and medium enterprise. Likewise, Rs. 6,039 crore would be disbursed for housing sector, Rs. 4,337 crore for infrastructure development, Rs. 3,157 crore for education sector, Rs. 185 crore as export credit and Rs. 429 crore for renewable energy. Besides, the term loan is reserved for Agriculture. The agriculture sector would receive Rs 4,011 crore for dairy activities, Rs. 3,832 crore for farm mechanization, Rs. 2,658 crore for water, Rs. 3,650 crore food processing units and Rs. 3,712 crore for storage facilities.

  

  22nd January 2016

• Agricultural bodies seek more allocation and Soft Loans for farmers in Budget 2016-2017

  Budget 2016-2017 might bring good news for farmers. The Finance Minister recently spoke out about the need for better investment and revamping the incentive structure for farmers considering that the agricultural sector is facing quite a lot of distress. The need to increase productivity by leveraging technology for seeds that are high yielding and efficient utilisation of water is one of the main challenges faced by agriculturists. Mandatory crop insurance was also sought for farmers.

  

  06th January 2016

• Rate Subvention Schemes to affect Loans

  Interest rate subvention schemes from the government, though aimed at helping farmers in their agriculture and farming ancillary activities, have actually affected long term loans by adding on to the incentives that are provided by short term loans.

  Keeping this in view, the Reserve Bank of India has decided to roll out the subvention in a phased manner and urges banks to offer insurance in lieu of lower rates. As of 2015, crop loans of up to INR 300000 had an interest rate lessened by 200 basis points, and an additional incentive of further lowering of 300 basis points can be availed on prompt repayment of the loans. The new insurance scheme will be covering all crops with every possible farmer eligible for the same.

  

  05th January 2016

• Odisha requests sanction of Rs.1,300 crore through NABARD for drought-stricken farmers

  The State Government of Odisha requested the Central Government to request a sanction of Rs.1,300 crore from the National Bank for Agriculture and Rural Development (NABARD).

  The funds are sought by Odisha State Cooperative Bank, who does not wish to further inconvenience the farmers of the drought-struck state of Odisha. The chief secretary has written to NABARD, but no response has yet been received.

  The cooperative banks in the region are the ones dispensing up to 70% of the crop loans, which has led to a stable and well-structured establishment of infrastructure and a sustainably profitable model for farmers. However, the resources of these cooperative banks are limited, and hence they depend on NABARD for refinancing.

  

  14th December 2015